The Singapore Cooperation Enterprise (SCE) has inked an MOU with Honduras' public works, transport and housing ministry to help finance the planning and construction of a military airport terminal in Palmerola, 70m north of capital Tegucigalpa.

Honduran President Porfirio Lobo Sosa met with his Singaporean counterpart Lee Hsien Loong during a visit to Asia, the public works ministry said in a release.

SCE showed a particular interest in investing in special development regions or model cities in Honduras, said public works, transport and housing minister Miguel Pastor.

The Palmerola international airport in will be built in Comayagua municipality, where a military airport is currently located.

The government has reached an agreement with local concessionaire InterAirports to build and operate the terminal. The company has said it has US$100mn available to complete construction, according to local press reports.

InterAirports has operated the country's eight international terminals since 2000.